Bona Fide Error

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Dictionary Says

Definition of 'Bona Fide Error'

An error that was unintentional; an "honest error." If a bona fide error is corrected immediately, then a defendant may not be liable for an action.

For example, under the Truth in Lending Act, a creditor can avoid liability by demonstrating that a violation was unintentional and was caused by a bona fide error, including clerical, calculation, computer malfunction or printing error. An error in legal judgment, however, is not ordinarily considered a bona fide error. 
Investopedia Says

Investopedia explains 'Bona Fide Error'

Bona fide is a Latin phrase that means "in good faith," and thus sincere or honest. It can also mean authentic or genuine; a bona fide Van Gogh is a painting by Van Gogh. The various uses of bona fide reflect these meanings. For example, a bona fide resident is someone who resides,  continuously and without interruption, for a certain minimum period of time. 

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'Bona Fide Error'

  • Taking Stock Of Discounted Cash Flow

    http://www.investopedia.com/articles/03/011403.asp
    ... like P/Es and price-to-sales ratios, DCF produces a bona fide stock value ... the inputs
    that produce these valuations are always changing and susceptible to error. ...

  • Evaluate Stock Price With Reverse-Engineering DCF

    http://www.investopedia.com/articles/fundamental-analysis/09/reverse-discount-cash-flow.asp
    ... approach, DCF analysis, which is supposed to deliver an "absolute valuation" or
    bona fide price on ... After a bit of trial and error, we come up with a 50% growth ...

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